State of Connecticut Office of the State Comptroller MEMORANDUM NO.2001-02


	STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2001-02

January 4, 2001

TO THE HEADS OF ALL STATE AGENCIES

Attention:	Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject:	Change in Payroll Deduction Checks

I. AUTHORITY

The Office of the State Comptroller in conjunction with the State Treasurer's Office is currently in the process of eliminating the printing of payroll deduction checks to state agencies that requires the agency to then deposit the check into a state account.

II. RECOVERY CHECKS

Agency recovery checks can potentially fall into this category. Currently these checks are handled in one of three ways:

Deposit the check with the Treasurer's Office directly into a state account to recover overpayments;

Deposit the check directly into an agency petty cash checking account to recover petty cash travel advances;

Deposit the check directly into an agency petty cash checking account and write a check from that account to the state agency for deposit with the Treasurer's Office directly into a state account for the recovery of overpayments and/or petty cash advances.

III. NEW AND EXISTING SORT CODES

The Payroll Services Division has established a new additional sort code for each level two. DEPL2 will be available for use effective immediately.

DEPL2 will not produce a check and should be used to recover overpayments, reimbursement for damaged state property, etc. These funds will automatically be "deposited" into your agency's revenue account (general fund, revenue/object 97060).

Agencies should then process a deposit slip correction in accordance with the state accounting manual to redirect funds to their appropriate account. Agencies are cautioned that if funds are not transferred before the end of the fiscal year, they will not be carried forward into the next fiscal year.

Agencies are to continue using sort code OCTL2 to recover money (ie: petty cash travel advances) that will be deposited into their agency's petty cash checking account. Payroll Services Division will continue to issue a check for this sort code. Agencies will be contacted in the near future regarding direct deposit of this check into their agency's petty cash checking account.

Agencies will continue to receive the deduction transmittal listing that identifies the amount of the deposit and how much was deducted from each employee. Additionally, if you have access to the OSC accounting system, you will be able to see the transfer of funds into your agency's revenue account on the actual check date.

IV. QUESTIONS

Questions should be directed to:
Office of the State Comptroller,
Accounting Services Unit	(860) 702-3384
Office of the State Comptroller,
Payroll Services Division	(860) 702-3448

NANCY WYMAN

STATE COMPTROLLER

NW:eh

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